Strategic Management Of Ikea

750 Words3 Pages
IKEA was founded in Sweden in 1943 by Ingvar Kampard and is one of the best international homes furnishing company in the world. Ikea operates in over 47 countries and has about 360 stores worldwide. IKEA currently ranks Number 41 on Forbes esteemed World’s Most Valuable Brands list. This organization gained huge competitive advantage by offering high quality furniture at very affordable prices the main objective of Ikea was to sell furniture at low price as possible so that many people can afford it, Ikea was able to do so by their effective inventory management strategies which are:
• Cost saving in furniture design:
Ikea designs its own product while keeping its prices low as possible. Ikea products are made from 50% of recycle materials
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It has in-store logistics personnel handling inventory management. These in-store logistics managers uses a replenishment management process called minimum/maximum settings for the reordering points. Minimum settings: The minimum amount of products available before reordering products. Maximum settings: The maximum amount of a product to order at one time. Due to the fact that all inventories are only stocked at night after store hours, min/max settings for IKEA are based on the number of products that will be sold from the reserve stack or bin in a single day or two-day period. The process meets demand management for customers while minimizing ordering too few or too many products. Ikea also follows high-flow and low-flow warehouse facilities. Products stocked in a low-flow facility low in demand. And high – flow is high in…show more content…
Recent trends in inventory management:
After globalization companies have begun implementing various inventory management techniques. Companies started using advance computers and various ERP software’s which help them keep track and maintain inventory more efficiently. With the use of internet companies can keep track of movement of inventory from different geographical places and with help of various software can check the level of inventory within the organization.
Enterprise resource planning (ERP)
ERP system provides a tool to track inventory of company in most efficient way, such as allowing businesses to pick the oldest stock first. ERP can be set up to automatically alert employees that they need to replenish inventory.

• Move to the cloud

Anywhere access is useful for businesses that want to improve inventory tracking. When inventory data is in the cloud it provides access that’s enables IT systems to interconnect and share data, and makes inventory levels and trends available in real-time. This also enables company for mobile inventory
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